Integrated lifestyle group Amara Holdings Ltd is expanding its chain of hotels to Myanmar with a proposed joint venture to develop and operate a business hotel in the Dagon Township of Yangon.

Its wholly owned subsidiary, Amara Hospitality Capital Pte Ltd, has inked a memorandum of understanding (MOU) with Myanmar's Youth Force Hotel Co Ltd and Youth Force Construction Co Ltd to develop hotels and engage in other real estate projects.

The parties plan to establish a joint venture to collaborate on the development and operation of the hotel as its first project. The proposed total investment is estimated to be about US$50million. The MOU is not a commitment to invest by the group and the terms of the joint venture agreement to be entered into are subject to further discussions and negotiations between the parties.

"Myanmar is becoming a promising investment destination with immense potentialto attract businesstravellers," Amara said, adding that hotels in Yangon are expected to enjoy healthy occupancy and
room rates in the country that has rich cultural history and a booming tourism sector.

The expansion into the country with over 60 million people is in line with the group's strategy of acquiring and investing in income‐producing hospitality assets in the regional markets of Asean and Asia.

Source: AmFraser